HMRC ‘Employer Duties’ and Employment Status reviews in the sector

21 March 2023      Julia Ascott, Employment Taxes Specialist

You may be aware that the Higher Education team within HMRC have begun reviewing ‘Employer Duties’ (employment taxes by another name) at around a dozen universities. We understand that all the reviews are at early stages and we will share areas of concern with the wider membership, with permission from those universities going through the reviews. A word of warning, although these are predominantly employment tax reviews, they may ask wider questions around, for example, subsidiaries.

At the PEG National meeting this week, advisers mentioned that teams outside of the HMRC Higher Education team were conducting ‘aspect’ reviews. These are reviews of particular tax issues and it should be no surprise that the top focus is the off-payroll working rules and employment status.

If you haven’t already reviewed your procedures and processes around taking on individuals and intermediaries outside of the payroll, now is the time to focus in. BUFDG have the resources to assist you with this:

  • Annual off-payroll working training course - available to all members at no additional cost. Taking place online on 22 March 2023 – booking is now closed but the recording will be available shortly
  • Time to Talk sessions – BDO presented a series of webinars focusing on the employment status of H E focused roles, series of webinars focusing on the employment status of H E focused roles, including visiting researchers, external examiners, students and guest lecturers
  • E-learning course on employment status which is of particular use to those employees sitting outside of finance, but may have responsibility for engaging contractors (including academics hiring contractors with ‘their’ grant funds)

It is not a surprise that HMRC will review employment status, nor is it a surprise that universities find this subject particular difficult. Employment status is complex and universities have some sector differences, which requires resource that not everyone can either find or afford.

Let BUFDG know how we can support you more, are there other resources that would be useful?

Read more

This site uses cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of the site and services and assist with our member communication efforts. Privacy Policy. Accept cookies Cookie Settings